TORONTO, ONTARIO -- (Marketwire) -- 08/16/10 -- BioExx Specialty Proteins Ltd. (TSX: BXI) announced today its financial results for the period ended June 30, 2010. Complete financial statements and Management's Discussion and Analysis have been filed for public review at www.sedar.com.

Financial Results

Revenues

During the quarter, the Company generated $838,283 of revenue from canola oil and canola meal sales at its Saskatoon plant, versus revenue of $1,695,668 in the prior quarter.

The lower revenue was driven by lower processing volumes and lower selling prices for products. The plant was off-line a significant number of days in the quarter as Phase 2 extraction and protein installation and commissioning activities dominated the plant. In addition, the quarter saw continued weakening in crush margins, with canola input prices higher and oil and meal output prices lower. Higher seed prices were primarily a result of poor early season planting and growing conditions on the prairies and increased demand from new crushing facilities being brought on line. Oil and meal prices were off in the quarter, driven by flat to slower demand generally. Given the weak crush margin environment during the quarter and the economic challenges associated with a crush-only plant, together with the fact that the Company had previously proven and solidified the Phase 1 operating parameters required for Phase 2 operation, economic optimization resulted in operating the crush plant only when required to maintain continuity of supply to existing customers. Accordingly, processing volumes and revenues in Q2 were low, relative to historical levels.

Cost of Goods Sold

Cost of Goods Sold for the quarter was $1,086,462, compared to $1,965,181 during the prior quarter, with the decrease accruing primarily to the lower processing volumes discussed above.

Gross Margin and Plant Margin

Gross Margin for the quarter was negative $248,179, compared with negative $269,513 for the prior quarter. The Gross Margin loss was slightly lower as a result of reduced labour and utilities costs in the quarter which accrued to the lower volumes processed. Other plant expenses during the quarter, which includes items such as maintenance expenses, QA/QC expenses, production supervision, plant supplies, and miscellaneous other plant expenses, was $405,741, versus the prior quarter at $397,376, approximately flat on a quarter over quarter basis. Together with amortization of plant and equipment of $167,315, this results in a negative Plant Margin of $821,235, versus a negative Plant Margin of $834,374 in the prior quarter.

As the Company has discussed in prior quarters, the operation of a very small 40,000 metric ton crush-only plant is economically challenging in an environment characterized by weak crush margins. Thus, until the introduction of commercial protein production and sales, plant operations are best viewed not on a stand-alone basis but rather as a stepping stone towards protein production.

Administrative and General Expenses

The Corporation incurred administrative and general expenses during the quarter of $2,637,869, compared to $3,307,332 in the prior quarter. The primary components of this reduction on a quarter-over-quarter basis were reductions in Office and general, research and development, and stock based compensation.

Net Loss

The Net Loss for the quarter was $3,426,357, compared to $4,112,197 for the prior quarter. This reduction in net loss is the cumulative result of the various items discussed above. On a per share basis, the Net Loss was $0.02 for the quarter, versus $0.03 in the prior quarter.

Working Capital and Liquidity

As at June 30, 2010, current assets were $11,429,353, including cash and restricted cash of $7,489,859. Against current liabilities of $11,256,772, this results in net working capital of $172,581. This compares to current assets of $24,456,353 and net working capital of $14,363,099 at March 31, 2010. The Company carefully monitored its working capital situation throughout the quarter, and developed alternate financing plans that could be put into place quickly if the need arose sooner than anticipated. Subsequent to the landmark event of initial commercial protein production demonstrations in Saskatoon, and after careful analysis and consideration, last week the Company announced that it had entered into an agreement to sell to a syndicate of underwriters led by Canaccord Genuity Corp., on a bought deal basis, 15,400,000 common shares ("Offered Shares") at a price of $1.95 per Offered Share for gross proceeds to BioExx of approximately $30 million (the "Offering"). The Company also granted the underwriters an over-allotment option to purchase up to an additional 15% of the Offered Shares on the same terms and conditions, exercisable any time, in whole or in part, up to 30 days after the closing of the Offering, for additional gross proceeds of up to approximately $4.5 million. Closing of the Offering is anticipated to be on or about August 24, 2010.

About BioExx Specialty Proteins Ltd.

Headquartered in Toronto, Canada, BioExx is a leading technology and industrial processing company focused on the extraction of oil and high-value proteins from oilseeds for the global food, beverage, and nutrition markets. BioExx uses patented and patent-pending technology that utilizes significantly lower temperatures than conventional methods for extracting the final quantities of oil necessary to enable its simplified and patent- pending methods for separating proteins from oilseeds. Relative to other commercial processes, the low temperature BioExx process results in comparatively low energy requirements, environmentally sound extraction and protein separation processes, and very high human food yield that cumulatively have the potential to make a highly valuable contribution to global food and protein supply while maintaining an excellent environmentally sustainable footprint. BioExx operates a commercial scale extraction facility in Saskatoon, Saskatchewan, is in development stages on it second plant in Minot, North Dakota and has a mission to construct additional and larger processing facilities on a global basis.

To find out more about BioExx Specialty Proteins Ltd. (TSX: BXI), please visit www.bioexx.com.

The statements made in this press release include forward-looking statements that involve a number of risks and uncertainties. These statements relate to future events or future performance and reflect management's current expectations and assumptions. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements, such as the economy, generally, competition in its target markets, the demand for BioExx's products, the availability of funding, the efficacy of its technology, and the anticipated costs of BioExx's plant construction and operation. These forward-looking statements are made as of the date hereof and BioExx does not assume any obligation to update or revise them to reflect new events or circumstances. Actual events or results could differ materially from BioExx's expectations and projections.